Mozambique out of pandemic-induced economic recession

Banana plantation

from ARMANDO DOMINGOS in Maputo, Mozambique
MAPUTO, (CAJ News) AFTER the country exited recession, prospects are high Mozambique will record significant economic growth this year.

The economy of the Southern African country grew by 0,1 percent in the first quarter of 2021, effectively exiting the recession caused by the coronavirus (COVID–19) pandemic.

The key sectors in the primary industry supported the economy, with the agriculture sector edging up by 4,8 percent quarter-on-quarter (q/q) and fishing up by 1,3 percent.

Agriculture contributed 23,5 percent to the total economic performance, thus counteracting the mining sector, which declined by 18 percent, and the contraction experienced in other sectors such as transport and communication and hotels and restaurants.

Rand Merchant Bank (RMB) stated the first quarter figures suggest that growth will rebound at a soft rate during the course of this year.

“Thus we maintain our view that the economy will grow by 2,5 percent in 2021,” RMB projected.

The projections are higher than 2,1 percent projected by the International Monetary Fund (IMF).

The onset of COVID–19 pandemic caused a sudden stop to Mozambique’s good economic performance.

Real gross domestic product (GDP) contracted by an estimated 0,5 percent in 2020, the first decline in 28 years, after growing 2,2 percent in 2019.

– CAJ News

 

 

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